Consumers Take the Wheel:

How Digital Is Changing the

Australian Automotive Industry

Written by Consumers are doing more and more of their

Richard Wolstenholme
shopping online, impacting the way even big-ticket
Published items such as cars are researched and purchased.
July 2015
We independently surveyed 700 car buyers to
learn more about their online behaviour and how
automakers can take advantage of new online
purchase paths.
A
s the digital world continues to expand into the physical
world, industries that once relied on selling traditional forms
of advertising, such as television and radio, need to adapt and
evolve. The same is true for ad-buying industries as well. The automotive
industry, in particular, has seen a huge shift in consumers' paths to
purchase, as they eschew traditional and sometimes lengthy purchase
paths in favor of the ease and immediacy of digital.

We recently partnered with Netpop Research to learn more about

the automotive purchase behaviours of Australians by surveying 700
consumers who had purchased a vehicle in the previous 12 months. The
data revealed some interesting new consumer behaviours, underscoring
the persuasive power of digital among prospective car buyers. For
instance, more than half of the surveyed buyers would consider buying
a vehicle online. Let’s dig into more of these findings, and we’ll share
insights into how your brand can make the most of your online presence.

Car buyers are making decisions faster

A car is one of the biggest purchases most consumers will ever make,
and buying such a big-ticket item has traditionally involved multiple in-
person interactions between the consumer and the seller. Consumers
looked to car dealerships to gain information about brands and prices
and then did the legwork necessary to make a purchase decision (visiting
several dealerships to comparison shop, for example).

Digital channels can replicate or supplant much of that purchase process,

however. Research can be done faster, as online channels offer a wealth
of expert and buyer reviews. It’s easy to compare many car models based
on many factors instead of relying solely on the word of a local car dealer.

In fact, the survey showed that 90% of car buyers turn to Google Search
for a shorter, more efficient research process and are now taking less
time to decide on a final purchase. From the beginning of their research

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 to their final purchase, consumers now take, on average, 2.3 months to
decide which car to buy. That’s down from 4 months in 2011 and 2.9
months in 2013.

Four out of five of those surveyed were undecided on the brand or model
they wanted when they began their research journey. And the internet
has only widened the breadth of their search. One in four individuals
purchased a brand they discovered during their research (up from one
in ten in 2011), and half of purchasers bought a brand that hadn’t been
a favourite at the start. Take note, auto brands that want to break into a
buyer’s consideration set: That list isn’t as locked as you might think.

4 out of 5 car buyers 7% No idea

were undecided on the 36% A few brands in mind
brand or model they
wanted when they began 32% A few brands and models in mind

Source: Netpop Research, their research journey 8% A few models in mind, but no idea about brands
“Global Auto Shopper Study:
18% An exact idea of the brand and model to buy
Australia,” November 2014.

And buyers’ consideration sets are growing, too. In 2014, the number of
brands consumers considered initially has increased to four, up from 3.6
brands in 2013.

What this means for automakers is that visibility during the research
phase is critical. A brand’s placement in search results and the online
experience it presents to potential buyers as they search can be the
difference between inclusion on a shortlist or getting overlooked.

The dealer’s role has changed

That speedy, largely digital research phase doesn’t mean dealers
don’t have a role to play. As consumers increasingly go online to do

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 research, they expect car brands (and their dealers) to have strong online
presences and be available to offer guidance on purchase options.

Fifty-one percent of buyers attempted to contact dealers online in 2013.

This number increased to 64% a year later. What’s surprising (and a big
area for improvement) is that 50% or more of buyers said that responses
to their online inquiries were unsatisfactory. This caused almost half to
switch dealers and/or brands.

In order for brands and dealers to stay top of mind and not risk losing
consumers to competitors, think of how a dealership interacts with
customers; it’s all about providing a welcoming, helpful experience and a
lightning fast response to inquiries.

Research happens everywhere, especially on mobile

Car buyers are using multiple devices to help make decisions, with an
increasingly large amount of research activity happening on mobile
devices. Almost 60% of auto buyers surveyed indicated they used a
smartphone during their research process. That number increased to
79% for luxury auto buyers.

And they’re not just doing their research on the go. Half conducted
research using a mobile device while they were physically at the
dealership. Instead of taking a dealer’s claims at face value, consumers
are validating these claims by using their phones.

Source: Netpop Research,

50% of car buyers
“Global Auto Shopper Study:
do research on their smartphones
Australia,” November 2014. while at car dealerships.

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 It’s important that consumers have access to the information they need
in the moments they need it. Consumers look to multiple devices to
make purchase decisions, and your brand’s online presence should be
consistent across platforms.

Online video makes research easy, informative,

and social
As Australians continue to turn to the internet when contemplating car
purchases, they’re increasingly looking for easy, entertaining ways to gain
information quickly. YouTube has emerged as a prominent resource for
consumers and an ideal platform for branded video content. The study
found that 53% of buyers used YouTube to watch auto videos, and that
number surged to 75% for luxury auto buyers.

Just as consumers use their mobile devices on-site to confirm car

dealers’ verbal claims, they’re also using YouTube videos to validate
their purchase decisions. Of the buyers surveyed, 83% indicated that
watching YouTube videos made them feel more confident about their
purchase decisions.

What car buyers do on YouTube:

Source: Netpop Research,

67% 65% 50%
“Global Auto Shopper Study: Evaluate offers in Search for Read/post reviews
Australia,” November 2014. automotive ads brands/models

When auto buyers visit YouTube, they’re not just watching car ads and
reviews. They watch an average of 4.5 other types of video content
(including news, comedy, cooking, and animation); this is proof that
they’re spending time on the platform and potentially exploring other

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brand offerings. It’s essential that auto brands are active on YouTube
because 77% of buyers stated YouTube helped them stay in touch with
the brands they like. Brands that create compelling, useful content for
YouTube will stay top of mind among consumers and retain their loyalty.

The survey responses are simply a snapshot of current car-buying

behaviour, and we can expect further shifts as technologies, web access,
and consumer behaviours evolve. The automotive industry can adapt to
these changes by identifying them early and responding to overarching
consumer trends. A good place to start is with the above findings. Having
recognized the change in online purchase habits, in addition to the
growing popularity of mobile and online video, brands can leverage these
insights to reach buyers and satisfy their growing digital demands.

Methodology
Google partnered with Netpop to uncover insights about online
automotive purchase behavior. From Oct. 9 to Oct. 28, 2014, an online
survey was conducted of 700 Australian car buyers who had purchased
a new automobile in the previous 12 months. The survey was conducted
globally in 20 countries. Weighting was applied to correct online bias
(based on the market’s internet population).

Richard Wolstenholme
Head of Industry, Automotive, Technology and Telco

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